New York's Statewide Home Sales Fall 50% in Post Tax Credit Era

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Statewide sales of existing single-family homes in New York State fell by 50 percent in July compared to the record-setting June total, which was bolstered by buyers who closed before the then-June 30 federal homebuyer tax credit deadline. The preliminary single-family sales data accumulated by the New York State Association of Realtors (NYSAR) also showed selling price growth as the July statewide median increased nearly 5 percent from June.

"The falloff in sales from the record June totals was expected," said Duncan R. MacKenzie, NYSAR chief executive officer, noting that the revised total of 11,518 sales was driven by tax credit buyers. "We believe the bulk of the tax credit sales were in the pipeline for June closings before the deadline was extended to September 30."

"The federal homebuyer tax credit gave the market a much-needed boost in the first half of 2010, but it also appears to have resulted in buyers shifting the timing of their home purchases to take advantage of the opportunity," MacKenzie said.  "As a result, the pool of buyers on the market during the typically busy summer market has been reduced, which in turn contributes to fewer sales."

"We are optimistic that today's historically low mortgage rates and a good selection of available inventory will continue to entice buyers to remain active through 2010 despite concerns about the economic recovery," said MacKenzie. "

New York Realtors sold 5,697 existing single-family homes in New York State during July 2010, a 50.5-percent decrease compared to the June 2010 sales total of 11,518. The July 2010 sales total was 34.9-percent below the July 2009 total of 8,755.

The July 2010 median sales price in New York State of $227,000 represents an increase of 4.9 percent compared to the June 2010 median of $216,437 and an increase of 15.2 percent from the July 2009 median of $197,000.

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